Replies to post #5489 on Boeing Company (BA)

[aCryptoKing]

I COUNTED ON IT from $240+, said as much here, & profited nicely.

The UNDERLYING PROBLEMS with Boeing have yet to be fully fleshed & EXPOSED!

The 787 story is STILL UNFOLDING & it's getting worse!

Initial 787 design cost Boeing ~50 BILLION DOLLARS more than it would have if they left the engineers in charge. NASA is griping about Boeing hand-holding & incompetence & there are MORE LAWSUITS underway.

The short-term does NOT look good for Boeing. When AMAZON buys 11 USED PLANES & folks pump the stock up $12-$14 you KNOW somethings not right.

I have NO CLUE who "axxhxxes" are & perhaps you might EXPLAIN...

But the Wall Street cost-cutting measures which led to a precipitous 3x increase in stock price came at the expense of the successful engineering-first problem-solving culture that made Boeing great. The DOWNSIDE consequences however are only beginning to be understood; & the DOWNSIDE by a 4x increase Q1 2020 DEBT. That's right. CORPORATE DEBT @ $65 BILLION DOLLARS & GROWING is FOUR TIMES what it was in Q1 2020.

That's 9 months & the CASH BURN & LOSSES with the 787 groundings, expanded FAA INVESTIGATIONS, etc., are ADDiNG about $3B more to their losses & CASH BURN! The metrics are going in the WRONG DIRECTION. And HUGE headwinds & global uncertainties remain.

~60% of air travel is BUSINESS TRAVEL, International, etc., & with COVID RAGING that is NOT going to return till POST SUMMER 2021 -- if not later in September, when schools HOPEFULLY open, parents & business can begin to "return to normal". If these B.1.1.7 mutant variants (which are up to 70% MORE CONTAGIOUS) are tamed by then, perhaps Boeing can improve. In the meantime, they'll have litigious issues, internal concerns & more money to dole out as the consequences of their poor choices & decisions come back to haunt.

BUT this ~$215 price is a premium Boeing doesn't deserve. The market WILL check that, you'll see. I do believe the short term is lower, not higher. Boeing is NOT what it used to be.... NOT by a long shot! Sorry for the pun. GLA

[aCryptoKing]

Sure... Meanwhile THIRD NEW VIRUS STRAIN found in JAPAN

KEY POINTS

The identification of a new Covid variant comes as countries scramble to contain two other

contagious variants that have emerged in the U.K. and South Africa.
Public health experts have expressed concern the new strains could pose a threat to inoculation efforts.

In recent weeks, optimism about the mass rollout of Covid vaccines appears to have been tempered by the resurgent rate of virus spread worldwide.

https://www.cnbc.com/2021/01/11/japan-covid-variant-how-it-compares-to-strains-in-uk-south-africa.html


This could have DISASTROUS consequences on Global Travel, delay return of business travel & drive current travel back down BELOW 70% for the foreseeable future! Put simply,...NOT GOOD!

But KEEP BUYING IT!

GLA